Despite recent volatility, analysts remain optimistic about Nvidia’s long-term growth. Key factors such as visionary leadership, high market share in AI applications, and strong profitability metrics support positive forecasts. Nvidia’s stock is poised for gains, with a 2025 price target reflecting confidence in its development potential.
The recent 12% drop back by Nvidia (NASDAQ: NVDA) stock, which retraced its cost below the $120 mark, offered a useful opportunity for investors to “buy the dip” and showed many queries about the future of the most famous semiconductor maker and its stock cost in the next few years.
NVDA stock started trading on June 28 at $125.38, with a positive profit of 2.49% from the pre-market and a 3.23% advance in the last five trading sessions.
While it might be difficult to forecast what the next year holds for NVDA shares, the following year is only six months away, and the narrative is already creating regarding Nvidia’s stock cost target in 2025.
Nvidia foundation reaching number one place will advantage NVDA stock
Nvidia presently surpassed Microsoft (NASDAQ: MSFT) to become the globe’s most useful general company, with a market cap gaining $3.34 trillion on June 18. However, Nvidia’s shares experienced a drop in subsequent sessions, causing it to lose its first position to both Microsoft and Apple (NASDAQ: AAPL).
Behind this, Truist Securities analysts think getting the top market cap does not challenge future investment returns.
Their comprehensive thinking of data from the past 26 years indicates that stocks like Microsoft, Cisco (NASDAQ: CSCO), ExxonMobil (NYSE: XOM), Apple, and Amazon (NASDAQ: AMZN) startly underperformed the S&P 500 in the short position after reaching the number one market cap, but generally outperformed in the lengthy term over one-year, three-year, and five-year periods.
William Stein increased his cost target on NVDA shares from $128 to $140, reflecting high confidence in Nvidia’s long-term development potential despite short-term market changes.
Key factors work in favor of NVDA stock
Ray Wang, CEO and principal analyst at Constellation Research, stays bullish, setting a $200 cost target depending on seven key things. These contain Nvidia’s visionary leadership, high entry barriers in the chip demand, significant switching prices, dominant market share, and high product roadmap.
Wang emphasizes Nvidia’s ecosystem, which has created its GPU as the standard for artificial intelligence (AI) applications and points to the organization’s impressive development and profitability metrics.
Last volatility is typical for a stock like Nvidia
Ben Reitz, founder of Technology Research at Melius Research, thinks that this volatility is not good for Nvidia and is driven by rebalancing and profit-taking.
Rather than short-term changes, Reitz highlights Nvidia’s dominance in the AI market through its complete-stack approach as he assigns it a “purchase” rating at a $160 cost target while drawing parallels to the Wintel duopoly and Apple’s iPhone triumph.
He also hints at the potential for high shareholder returns, provided Nvidia’s projected $270 billion money generation over the upcoming three years.
The analysts’ thinking against Nvidia stock in 2025 seems already set as they see the chipmaker giant as poised to resume with gains in the next year.